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Dissemination Standards Bulletin Board Special Data Dissemination Standard (THE SUMMARY METHODOLOGY STATEMENT HAS BEEN PROVIDED BY LUXEMBOURG, WHICH IS SOLELY RESPONSIBLE FOR ITS ACCURACY AND COMPLETENESS. AT THE TIME OF POSTING, THE STATEMENT WAS REVIEWED BY THE IMF FOR CONSISTENCY WITH THE METADATA BASE PAGE DESCRIBING DISSEMINATION PRACTICES. SUBSCRIBERS ARE REQUIRED TO PROVIDE UPDATES TO THE STATEMENT, AS NEEDED, AND ARE EXPECTED TO MAKE OTHER IMPROVEMENTS, AS WARRANTED, TO ENHANCE TRANSPARENCY) Luxembourg Summary Methodology Interest rates Last Posted: Oct-6-2009 Last Certified: Dec-29-2008 Last Updated: May-1-2006 Contact Person(s)          Printer Friendly Page   Mr. Roland Nockels, Département Monétaire, économique et statistique, Banque centrale du Luxembourg, 2, boulevard Royal, Luxembourg L-2983   Phone : 352 47 74 42 88   Fax : 352 47 74 49 20   Email : mes@bcl.lu    Mr Yann Wicky, Département Monétaire, économique et statistique, Banque centrale du Luxembourg, 2, boulevard Royal, Luxembourg L-2983   Phone : 352 4774 42 80   Fax : 352 4774 42 90   Email : yann.wicky@bcl.lu

I. Analytical Framework, Concepts, Definitions, and Classifications

2.1.1 Concepts and definitions   The methodological description of interest rates in Luxembourg is covered by summary methodologies on the following items:   A. Policy rates of the European System of Central Banks: In addition to the information provided below, Luxembourg, as a participating member state of the European Economic and Monetary Union (EMU), has elected to refer to the summary methodology statement provided by the European Central Bank on this item. This statement can be accessed by clicking on        http://dsbb.imf.org/Applications/web/basepagesmreport/?strcode=ECB&strcat=INR00 B. Rates on Government Securities (Bond rates): Rates of the ECB: ESCB-Rate for main refinancing operations: Besides the summary provided below, for full details see the website of the ECB (http://www.ecb.int). The main refinancing operations are the most important open market operations conducted by the ESCB, playing a pivotal role in pursuing the aims of steering interest rates, managing the liquidity situation in the market and signaling the stance of monetary policy. They also provide the bulk of refinancing the financial sector. The tool used is the reverse transaction, which refer to operations where the ESCB buys or sells eligible assets under repurchase agreements or conducts credit operations against eligible assets as collateral. The operational features of the main refinancing operations can be summarized as follows:   They are liquidity-providing operations. They are executed regularly each week. They normally have a maturity of 2 weeks. They are executed in a decentralized manner by the national central banks (i.e. for Luxembourg the BCL). They are executed through standard tenders. All counterparts fulfilling the general eligibility criteria may submit tender bids for the main refinancing operations. Both tier one and tier two assets are eligible as underlying assets for the main refinancing operations.       The general eligibility criteria is constituted of the following points:       Only institutions subject to the ESCB's minimum reserve system according to the Article 19.1 of the ESCB/ECB statute are eligible to be counterparts. Counterparts must be financially sound, and should be subject to at least one form of EU/EEA harmonized supervision by national authorities. Counterparts must fulfil any operational criteria specified in the relevant contractual or regulatory arrangements applied by the respective national central bank (i.e. the BCL for Luxembourg) or the ECB.       Tier one and tier two assets are defined as follows:   Tier one consists of marketable debt instruments fulfilling uniform euro area-wide eligibility criteria specified by the ECB. The ECB establishes and maintains a list of tier one assets. This list is available to the public. Tier two consists of additional assets, marketable and nonmarketable, which are of particular importance for national financial markets and banking systems and for which eligibility criteria are established by the national central bank (i.e. the BCL for Luxembourg), subject to the minimum eligibility criteria established by the ECB. The specific eligibility criteria for tier two applied by the respective national central banks are subject to approval by the ECB. The national central banks establish and maintain national lists of eligible tier two assets; these lists are available to the public.   General government borrowing rates 10 years benchmark linear bond. Linear bonds (OLUX) were created as a means of modernizing the management of the public debt and activating the market for public bonds of Luxembourg. They are mainly designed for market professionals and investors with a substantial or diversified portfolio. The main features of OLUX can be summarized as follows:   Linear bonds from different tranches of a single loan are identical and fungible (it's the so-called "assimilation"). Each of these tranches gives the issuer and the subscribers the same rights and obligations. All tranches of linear bonds of a single loan constitute a line: they have an identical nominal interest rate and mature on the same date.   Interest rates of credit institutions: Interest rates on savings books or mortgage loans are the rates applied by credit institutions to these respective products vis-à-vis their customers.

II. Scope of the data

2.2.1 Scope Scope of the data   Rates of the ESCB ESCB-Rate for main refinancing operations: Data cover only interest rates. General government borrowing rates 10 years benchmark linear bond: Data cover only the yield rate of the benchmark OLUX. Interest rates of credit institutions Rates are an average non-weighted rate of all transactions done in the respective instruments.

III. Accounting Conventions

2.4.2 Recording basis   Rates of the ESCB ESCB-Rate for main refinancing operations: Based on 360-day count. General government borrowing rates 10 years benchmark linear bond: The yield rate (in fact an internal rate of return) is computed on an accrual basis (i.e. taking into account the "dirty price" of the bond) with a actual /actual count. Interest rates of credit institutions Based on spot value with an actual/360 day basis.

IV. Nature of the Basic Data Sources

3.1.1 Source data collection programs   Rates of the ESCB ESCB-Rate for main refinancing operations: Gross operational data. General government borrowing rates 10 years benchmark linear bond: The benchmark is the latest OLUX issued with a redemption date the closest to 10 years. The characteristics of the OLUX selected are published on the website of the Treasury and the yield is published on the website of the Bourse de Luxembourg:   http://www.ts.etat.lu/prospectus.htm http://www.bourse.lu/        Under “search”  a direct search can be made using the ISIN code LU0076394732     Interest rates of credit institutions Data are based on regular BCL reporting by credit institutions.

V. Compilation Practices

3.3.1 Source data statistical techniques   Rates of the ESCB The dates used are those when the rate became applicable.   General government borrowing rates 10 years benchmark linear bond: The dates used are those of the computation of the yield in the secondary market.   Interest rates of credit institutions The rates are averaged and rounded to three decimal places.

VI. Other Aspects

Footnotes

Last posted: Date IMF staff last posted an update to these metadata on the DSBB.

Last certified: Date subscriber last officially certified the accuracy of these metadata.

Last updated: Date subscriber last submitted an update of these metadata to the IMF.